Of course he doesn't admit that they have actually RELEASED fake Osama videos.

From the website of the Washington Post...

QUOTE

CIA unit's wacky idea: Depict Saddam as gayby Jeff Stein

During planning for the 2003 invasion of Iraq, the CIA's Iraq Operations Group kicked around a number of ideas for discrediting Saddam Hussein in the eyes of his people.

One was to create a video purporting to show the Iraqi dictator having sex with a teenage boy, according to two former CIA officials familiar with the project.

“It would look like it was taken by a hidden camera,” said one of the former officials. “Very grainy, like it was a secret videotaping of a sex session.”

The idea was to then “flood Iraq with the videos,” the former official said.

Another idea was to interrupt Iraqi television programming with a fake special news bulletin. An actor playing Hussein would announce that he was stepping down in favor of his (much-reviled) son Uday.

“I’m sure you will throw your support behind His Excellency Uday,” the fake Hussein would intone.

The spy agency’s Office of Technical Services collaborated on the ideas, which also included inserting fake “crawls” -- messages at the bottom of the screen -- into Iraqi newscasts.

The agency actually did make a video purporting to show Osama bin Laden and his cronies sitting around a campfire swigging bottles of liquor and savoring their conquests with boys, one of the former CIA officers recalled, chuckling at the memory. The actors were drawn from “some of us darker-skinned employees,” he said.

Eventually, “things ground to a halt,” the other former officer said, because no one could come to agreement on the projects.

Two former CIA officials have admitted to creating a fake video in which intelligence officers dressed up as Osama Bin Laden and his cronies in an effort to defame the terrorist leader throughout the middle east.

The details are outlined in a Washington Post article by investigative reporter and former Army Intelligence case officer Jeff Stein.

Stein’s sources told him that during planning for the 2003 invasion of Iraq, the CIA’s Iraq Operations Group considered creating a fake video of Saddam Hussein engaged in sexual acts with a teenage boy, then flooding Iraq with copies of the tape.

That idea, along with faking Iraqi news bulletins, never came to fruition according to the former CIA officials, because agreement on the projects could not be reached between the Iraq Group and CIA’s Office of Technical Services.

However, the two sources reveal that the agency did previously concoct at least one fake Bin Laden video:

The agency actually did make a video purporting to show Osama bin Laden and his cronies sitting around a campfire swigging bottles of liquor and savoring their conquests with boys, one of the former CIA officers recalled, chuckling at the memory. The actors were drawn from “some of us darker-skinned employees,” he said.

The former officials told Stein that the project was taken over by the military after it ground to a halt:

The reality, the former officials said, was that the agency really didn’t have enough money and expertise to carry out the projects.

“The military took them over,” said one. “They had assets in psy-war down at Ft. Bragg,” at the army’s special warfare center.

This latest revelation bolsters evidence that the intelligence agencies, and perhaps more significantly, the military have been engaged in creating fake Bin Laden videos in the past.

As we have exhaustively documented, Intelcenter, the U.S. monitoring group that routinely releases Bin Laden video and audio, much of which have been proven to be either rehashed old footage or outright fakes, is an offshoot of IDEFENSE, a web security company that monitors intelligence from the middle east.

IDEFENSE is heavily populated by long serving ex military intelligence officials, such as senior military psy-op intelligence officer Jim Melnick, who served 16 years in the US army and the Defense Intelligence Agency (DIA) in psychological operations. Melnick has also worked directly for former Defense Secretary Donald Rumsfeld.

Intelcenter notoriously released the “laughing hijackers” tape and claimed it was an Al-Qaeda video, despite the fact that the footage was obtained by a “security agency” at a 2000 Bin Laden speech.

The tape featured a fat Osama laughing and joking about how he’d carried out 9/11. The video was also mistranslated in order to manipulate viewer opinion and featured “Bin Laden” praising two of the hijackers, only he got their names wrong. This Osama also used the wrong hand to write with and wore gold rings, a practice totally in opposition to the Muslim faith.

Despite the fact that the man in the video looks nothing like Bin Laden, the CIA stood by it and declared it to be the official “9/11 confession video”.

The notion that the CIA project was taken over and drastically improved by the Pentagon at some point after 2003 jives with the improvement in quality of Bin Laden videos in later years. Most notably the video that was released immediately ahead of the 2004 election, and it’s digitally manipulated duplicate from 2007, in which Bin Laden appeared to have a dyed beard.

For a run down of some of the most notoriously dubious Bin Laden videos see the following article.